Learning from Mauritius’s Economic Transformation: A Policymaker’s Perspective

Metiku, Arkebe

Abstract

Mauritius’s remarkable economic performance has earned it a reputation as Africa’s outlier performer. From 1970 to 2020, the country sustained economic growth, demonstrated structural transformation, and adapted to a constantly changing and turbulent external environment. The chapter draws on this fifty-year experience of economic development to review the country’s development path and economic performance from a policymaker’s perspective, presenting alternative explanations and extracting relevant lessons for the late-late developers. First, the chapter reviews Mauritius’s economic transformation, focusing on economic diversification and export capabilities, industrialization and industrial policy, and institutions. It contests the conventional explanation of Mauritian success as an ‘economic miracle’ attributable to an open economy and market liberalization. Second, it will draw on the author’s field study, primary research, and existing literature. Third, the chapter highlights how the Mauritian government’s policymaking exhibited pragmatism and policy learning, mainly from East Asian policy experiences in industrialization. This experience shows the pursuit of an active industrial policy and a grand development vision, the state’s role in building broad social contracts, and productive dialogue with the private sector.

Citation

Metiku, A. Learning from Mauritius’s Economic Transformation: A Policymaker’s Perspective. In C. Oya, R. Ramtohul, & V. Tandrayen-Ragoobur (Eds.), The Oxford Handbook of the Mauritian Economy (435-462). Oxford University Press. https://doi.org/10.1093/oxfordhb/9780192856494.013.20

• Online Publication Date: Mar 20, 2025
• Deposit Date: Jul 8, 2025
• Publisher: Oxford University Press
• Pages: 435-462
• Book Title: The Oxford Handbook of the Mauritian Economy
• Chapter Number: 20
• ISBN: 9780192856494
• DOI: https://doi.org/10.1093/oxfordhb/9780192856494.013.20
• Keywords: economic diversification, industrial policy, structural transformation, export processing zones, policy learning, export-led industrialization, Mauritius, Africa